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Who can say what a foreign exchange forward contract is?
Foreign exchange forward refers to foreign exchange transactions whose delivery date exceeds two business days. A transaction in which both parties agree to make substantial delivery on a specific date or period in the future according to the amount, currency and exchange rate agreed at the time of the transaction. The first purpose is to avoid the risk of exchange rate fluctuation and is suitable for general importers and exporters. Agree on a fixed exchange rate in advance, and then pay the principal according to this exchange rate to avoid the impact of exchange rate fluctuations, thus eroding profits.